Golden Star supporting the community in Ghana

In late August, Golden Star Resources launched its Community Development Endowment Fund to provide a transparent mechanism to fund its community development activities around its mining operations at Bogoso/Prestea and Wassa in Ghana. The fund was launched at a ceremony which hosted the Minister for Ghana’s Western Region, his advisors and the traditional rulers for the area.

Peter Bradford, President and CEO, said “Golden Star is proud of the community development projects that it has implemented in Ghana since it began operations in the country in 1999. However, these projects sometimes lacked full consultation with and ownership from the community. In recognition of this, Golden Star established an Endowment Fund in December 2005 for its community development activities. Since then community development projects that were previously committed have been completed and Golden Star has funded the Endowment Fund at an initial rate of $0.50/oz of gold sold. With the completion of the previously committed development projects, the Endowment Fund has been officially launched and the funding rate has been increased to $1.00/oz of gold sold plus 0.1% of pre-tax profit. In parallel, Golden Star has commenced discussions with the community on the operation of the Endowment Fund and the establishment of broad based community consultative committees to oversee the review and selection of worthy projects for funding by the Endowment Fund.”

While at Bogoso/Prestea, the Regional Minister and his advisors toured the Company’s operations including the sulphide expansion project, open pit operations, reclamation areas, community development and sustainable development activities. They also visited the Bondaye shaft, where the company intends to commence trial underground mining later in 2006. The tour and discussions also focused on the need to stop illegal mining on the company’s concessions. The Regional Minister stressed the government’s commitment to protect investment and recognized the need to stop illegal mining so that formal underground mining at Prestea could be re-commenced. He appealed to the chiefs and people of the area for their co-operation.

Golden Star has also announced the re-branding of its subsidiaries in Ghana, which is intended to provide a stronger corporate identity for the Golden Star group in Ghana.

· Golden Star Bogoso/Prestea Ltd has replaced Bogoso Gold Ltd

· Golden Star Wassa Ltd has replaced Wexford Goldfields Ltd

· Golden Star Exploration Ghana Ltd will be the vehicle for the group’s exploration activities in Ghana

Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines. In addition, the company has a majority interest in the currently inactive Prestea underground mine, as well as gold exploration interests elsewhere in West Africa and in the Guiana Shield of South America.